Legal Question in Wills and Trusts in North Carolina

Can a lender foreclose a property when their is an executor of an estate?


Asked on 10/26/11, 10:18 am

1 Answer from Attorneys

Real property, if this is a North Carolina estate, is inherited subject to any existing mortgages unless there is a directive in the will providing for the mortgage to be satisfied from other funds. The real property ordinarily does not become part of the estate of the deceased unless there is not enough money to pay any bills of the estate. In such case, the executor can sell the property. If there is a will, see if the executor is required to get court approval to sell the land. If there is no will or the will is silent, the executor would have to petition the court to sell the property if the estate needs the funds.

My question is why hasn't the mortgage been paid? Is there enough money in the estate to pay the bills? If there is not enough funds, then the beneficiary and the executor need to get together and get this property out of foreclosure and get the property sold. If there is enough funds in the estate, the mortgage is the responsibility of the beneficiary and the executor has little to do with it. If it has been less than 2 years since the death of the deceased, then the beneficiary would need to join the executor in any decision to sell the property and I assume such would be the case if the lender was attempting to foreclose if there was some reason why the executor would have to be involved.

The beneficiary can sell the property at any time before the foreclosure sale. If there is equity in the property, then the beneficiary needs to try and get this worked out.

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Answered on 10/26/11, 10:32 am


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